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Declaring bank accounts outside Canada

adtocanada

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Jul 28, 2016
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Hi,

I am moving next month to Canada and have some money saved. I am thinking of keeping my savings in my home country, and just take some money ( whatever I need to cover first year expenses). I get much higher interest on my savings compared to Canada's.

My question is, do I need to declare the different accounts I have outside Canada after I settled? Is there a reason why it would be better to bring all my savings to Canada instead of keeping them in my home country?
 

steaky

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You would need to declare if the monies are worth $10,000 Canadian dollars or more.
 

NetMecca

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I don't agree with the over 10k declaration comment. That is for cash carried while crossing a border.

You are permitted to have accounts in foreign countries (not Canada) without declaration of the actual accounts or amounts in them. HOWEVER the issue you will likely run into is tax. You will be required to declare your interest income on those foreign accounts as part of your tax to CRA. If you are paying taxes on the interest in the foreign country already there may be some tax agreements that make if possible for your to reduce your taxes in Canada, but I suggest you get an accountant with experience in such matters. They are usually pretty expensive.

The biggest down side of money in foreign countries is the volatility of exchange rates. I know I can get 10 times the Canadian bank interest rate in my country of origin however the currency sucks and constantly depreciates at a rate far outweighing the benefit of higher interest. Also perhaps you should consider some alternative saving options (not bank). I found that trading on the stock exchange is not complicated in Canada, with easy access to local and foreign markets. I particularly favour dividend based income stocks. For me they have proven fairly stable and with high returns 10 even 15 %.

Good luck. Some fun choices
 
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adtocanada

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Jul 28, 2016
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I don't agree with the over 10k declaration comment. That is for cash carried while crossing a border.

You are permitted to have accounts in foreign countries (not Canada) without declaration of the actual accounts or amounts in them. HOWEVER the issue you will likely run into is tax. You will be required to declare your interest income on those foreign accounts as part of your tax to CRA. If you are paying taxes on the interest in the foreign country already there may be some tax agreements that make if possible for your to reduce your taxes in Canada, but I suggest you get an accountant with experience in such matters. They are usually pretty expensive.

The biggest down side of money in foreign countries is the volatility of exchange rates. I know I can get 10 times the Canadian bank interest rate in my country of origin however the currency sucks and constantly depreciates at a rate far outweighing the benefit of higher interest. Also perhaps you should consider some alternative saving options (not bank). I found that trading on the stock exchange is not complicated in Canada, with easy access to local and foreign markets. I particularly favour dividend based income stocks. For me they have proven fairly stable and with high returns 10 even 15 %.

Good luck. Some fun choices
Thanks! Thats was really helpful! I have opened a canadian account in my home country. I also have a USD savings account where ive put my savings. if the USDCAD fluctuates, then ill transfer them to my CAD account. When i arrive, ill check other investment options ( similar to the ones you recommended) thanks for your help!
 

PMM

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Jun 30, 2005
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Hi


Thanks! Thats was really helpful! I have opened a canadian account in my home country. I also have a USD savings account where ive put my savings. if the USDCAD fluctuates, then ill transfer them to my CAD account. When i arrive, ill check other investment options ( similar to the ones you recommended) thanks for your help!
1. If you have $100K or over abroad in either foreign properties or bank accounts, it must be declared on your Canadian Tax return.
https://turbotax.intuit.ca/tips/declaring-foreign-property-on-your-tax-return-6217
 
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alok4best

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Hi




1. If you have $100K or over abroad in either foreign properties or bank accounts, it must be declared on your Canadian Tax return.
https://turbotax.intuit.ca/tips/declaring-foreign-property-on-your-tax-return-6217
Correct. Would also like to add that property in this statement does not mean just a house or land. It is basically any investment instrument which can generate income, which could be insurance plans, mutual funds, stock, or investment real estate. However, you don't have to declare a house which is for your personal use, so basically a house which does not generate income.